Samsung CEO, Kwon Oh-hyun, Resigns Due To 'Unprecedented Crisis'

The chief executive officer (CEO) of Samsung Electronics is stepping down in a surprise resignation after decades at the company, saying the business needed new leadership following a bribery scandal that led to the imprisonment of its de facto chief.

Kwon joined Samsung in 1985 as a researcher of the company's Semiconductor Research Institute in the US. Lee, who was found guilty in August of bribery, perjury and other charges relating to payments made by Samsung to ousted president Park Geun-Hye's secret confidante Choi Soon-Sil, is appealing his five-year sentence and says he is innocent.

"As we are confronted with unprecedented crisis inside out, I believe that time has now come for the company start anew, with a new spirit and young leadership to better respond to challenges arising from the rapidly changing IT industry", he wrote. For the third quarter of 2017, Samsung expects to make around 14.5 trillion won (around $12.8 billion) in operating profit off 62 trillion won (around $54.7 billion) in revenue, according to The Verge. Kwon has served as a vice chairman at Samsung Electronics since 2012 and also served as a senior executive at the company's display division since previous year.

Kwon added the company is facing a grave situation despite it making record-breaking earnings. What's interesting, is that while the company has clearly and unmistakably been put through the wringer over the last few years, most recent reports suggest that, for once in a long while, things may be turning around for Samsung.

For its bottom-line boost, the company credited the success of its Galaxy S8 smartphone, along with strong memory-chip sales. But it could also encompass Samsung's recall fiasco with the Note7 smartphone past year, with the flagship smartphone having to be pulled off of market shelves due to a fire hazard with its charging mechanism.

"Nobody wants to be the chief of Samsung Electronics at a time like this; it's too risky", said Park.